Markets
Is the crypto market falling? Key Factors Investors Should Know
Is the crypto market heading for a correction? Today, global market capitalization has fallen by 3%, falling to $2.4 trillion. The guilty? The worrying Bitcoin crisis.
After hovering around the crucial $63,000 support level last week, the crypto king is now hovering around $62,800. Will it hold? Or are we headed for a steeper fall?
Analysts have some answers for you.
Understanding Investor Sentiment
In a recent analysis, Michaël Van De Poppe highlighted significant changes in investor behavior during a prolonged market downturn. Retailer interest, as measured by YouTube engagement, has declined significantly, from 25% to 30% compared to levels seen in 2021.
This drop coincided with a bearish phase where alternative coins like Chainlink saw sharp declines of up to 60% compared to Bitcoin over the last five months.
Bitcoin’s dominance remains a crucial factor shaping market sentiment. Since the introduction of Bitcoin ETFs, the cryptocurrency has maintained stability near its all-time highs. This stands in stark contrast to the challenges facing alternative coins, which continue to struggle under current market conditions.
Meme Coins: fame versus real value
Van De Poppe also shared his views on meme coins, expressing skepticism towards celebrity-backed tokens such as TrumpCoin, Daddy Tate, and Iggy Azalea’s Mother Iggy, viewing them more as publicity stunts than as investments with real value.
Despite this caution, he recognizes the potential opportunities of certain meme coins like Dogecoin (DOGE) and Pepe (PEPE), noting their high volatility and speculative nature.
Current Market analysis
Over the past 24 hours, many meme coins have seen significant declines. For example, DOGE is trading at $0.1208, a decline of almost 3%, while PEPE and RUNES saw steeper declines of 8% and 9.84%, respectively. Analysts predict a potential rebound in altcoins in the coming weeks, suggesting a shift in investor focus from Bitcoin ETF to opportunities within the Ethereum network.
Ethereum gains ground
Attention has recently turned to the Ethereum network, fueled by Santiment on-chain data revealing a notable increase in active addresses, surpassing 617,000 – the highest in three months. This surge coincides with the highly anticipated listing of Newly Approved Spot Ether ETFs in the USA. Market optimism is bolstered by support from financial giants like BlackRock and Fidelity, which have already allocated funds in anticipation of these listings, echoing the bullish trend seen earlier this year with Bitcoin ETFs.
Are you feeling bullish or bearish on the cryptocurrency market? Tell us.
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